Whether you’re creating a sales letter, a brochure, a newsletter, or any other business promotional piece, you need to write in a way that not only explains your product or service, but also compels your prospects to contact you.

Unfortunately, many promotional pieces miss the mark. Outrageous claims, weak calls to action, and sloppy formatting are the common mistakes that plague most people’s writing. Such errors accomplish only one thing: They destine your promotional piece for the infamous “round file.” They also suggest that you’re uncreative and possibly incapable of delivering quality work.

To entice prospects to contact you based on your promotional mailings, you need to keep your writing both lively and factual. Here are seven “secrets” that will help you write promotional pieces even your toughest prospects can’t resist.

1. Make it readable. When you select the paper stock for your pieces, opt for white, off-white, or other soothing paper colors only. If you think using outrageous paper colors such as neon yellow or fuchsia will gain attention, think again. Hurting someone’s eyes is not the way to gain attention.

Also, be mindful of the font you choose. Sure, your computer comes with all sorts of innovative fonts, but this is not the time to try them out. Stick with a simple font, such as Times New Roman or Arial, in a 10, 11, or 12-point type. If you have to make your print tiny in order to squeeze everything into your allotted space, then you’re saying too much. As Shakespeare said, “Brevity is the soul of wit.” In the case of promotional writing, “Brevity is the showcase of your wits.” 

2.  Write a headline that gets to the point. You have less than five seconds to impress your prospects to read on. And the first thing any prospect reads is the piece’s headline. So craft a compelling headline that immediately conveys why this information is important to your prospects. The four main headline formulas that work are:

• “How To.” The formula is “How to” + verb + product/service/noun + benefit. For example: “How to Create a Store Promotion that Increases Revenue.”

• “New.” The formula is “New” + product/service + benefit. For example: “New Tax Law Saves You Money”

• “Power Verb.” The formula is “Power Verb” + product/service + benefit. For example: “Prepare a Business Plan that Boosts Company Profits”

• “Free.” The formula is “Free” + product/service + benefit. For example: “Free Booklet Reveals the Secret to Lowering Your Interest Rate”

Regardless of the headline formula you choose, avoid sounding like an infomercial. Since your headline determines if the prospect keeps reading, craft yours wisely.

3. Keep the hype to a minimum. Many people think that in order to solicit interest in their promotional piece they must write something outrageous. To some degree, this is true. Saying something outrageous is a great way to generate interest, since people naturally love controversy. Plus, if you can stir things up, you’ll get a lot of exposure. The thing to remember, however, is that you must be prepared to answer questions and/or prove everything you write. So, if you want to write something just for sensationalism but can’t back it up, don’t. You must be able to support everything you print.

4. Go easy on the posturing. Although you may produce the best products or offer the most unique services in the world, that is for your prospects to decide. Every superlative you use in your promotional piece will reduce the prospect’s trust in what you say. So, instead of telling prospects that your product is “the most extraordinary widget to hit the market” or that your service is “capable of revolutionizing the industry,” show your prospects how these claims are possible. Give the benefits of using the product or service as they pertain to your prospects’ lives so they can determine just how extraordinary or revolutionary the product or service really is.

5. Evoke images. As you write, evoke more than one of the five senses. Paint a picture with your words so prospects see, hear, smell, taste, and feel what you’re describing. Contrary to popular belief, the best promotional writers think in pictures, not words. They see the image they want to convey to their prospects, and that’s what they write.

If you are a candy manufacturer or a florist, for example, write so that your readers smell the candy or the flowers, not just see what they look like. If you are in the restaurant business, help your readers taste the food. If you are writing about business productivity, help your prospects hear the hustle of productivity and feel the rush of a sales call. Do more than just tell prospects what’s going on.

6. Make a compelling call to action. What do you want the person reading your sales letter, brochure, or other promotional piece to do? Buy your product? Call you for more information? Visit your web site? Whatever action you want your prospects to take, state it clearly.

Too many promotional pieces ramble on about all the features and benefits of the product, but they never tell the prospects to actually do anything. For example, in a sales letter you could write: “Please call our office immediately for more information on how we can help.” A brochure could say: “Order the widget at our special introductory price today.” In a newsletter you could state: “Visit our web site for more information about our new product line.” Tell prospects precisely what you want them to do.

7. Clearly state your contact information. Always let prospects know who to contact and how to do so. List a name, phone number, and e-mail address prominently on every piece. Rarely will prospects search for your contact information, so display it prominently at the top and bottom of every page. Highlight the contact information if it blends in with the text too much. Remember, the goal is for your prospects to contact you. Make it easy for them to do so.

When your promotional pieces present your information in the most compelling and factual manner, your prospects will find them and your company irresistible. So as you write future sales letters, brochures, or other promotional pieces, keep these guidelines in mind. When you do, you’ll create a promotional piece that delights prospects and makes them eager to do business with you. With well-written promotional pieces, you will attract more and better clients to help your business grow.

Dawn Josephson, the Master Writing Coach, has been helping business professionals write better to earn more since 1998. For more information, visit www.masterwritingcoach.com.

Great customer service—the stuff that creates loyal customers—often hinges on small actions and carefully (and genuinely) spoken words.

Business people often consider only the people who exchange money for goods or services their customers. But, what about employees? Your spouse? Son? Daughter? Best friend? Are they your customers?

The answer is “yes.” The exchange between a business and a person isn’t necessarily financial. If you do something for a kind word, a good review, or help with the dishes an exchange is made.

No matter who your customers are you have the ability to serve them, make them happy, and make them customers for life— or disappoint and frustrate them. The choice is yours.

Great customer service

Dictionary.com defines service as, “an act of helpful activity; help; aid.” That means that anything you do to help someone is a service. Customer service, therefore, is any helpful act you do for anyone you come in contact with.

To provide memorable customers service, encourage your employees to find ways to go above-and-beyond in their interactions. It is often the small things that make a memorable experience.

Here are a couple examples:

• A business sends an e-mail to new customers explaining how to find its offices. It attaches a video with a visual tour of landmarks, ending in a display of the office’s exterior. All that to make it easier for the new customer to find its hard-to-locate office.

• You expect good service and elegance at an expensive resort—personalized service at the check-in desk; crystal glassware and perfectly folded napkins in the dining room; and luxurious towels in the bathroom. But a guest was pleasantly surprised when he looked under the bed to look for a wayward sock: He found a tent card under the bed said that said, “Yes, we clean under here, too!”

The right words

While what you do for the customers is important, sometimes the most difficult part of a customer service encounter is knowing what to say as you help your customers. To make sure words do not fail you, here are some suggestions:

Situation: You want to assure the customer you will help him:

• “I’m going to do everything I can to solve this problem for you.”

• “Certainly, let me take care of that for you.”

• “Let me give you my direct extension [or cell number] in case something else comes up.”

Situation: You want to reassure the customer you understand her problem:

• “Let me make sure I’ve got this right…”

• “What you are saying then, is that…”

Situation: When you get frustrated because of a difficult customer, say to yourself:

• “If we didn’t have customers, they wouldn’t need me.”

• “My attitude is my most important tool.”

• “They’re not mad at me, they’re mad in my direction.”

Situation: You try to move a situation away from blame and into solution:

• “How is it that I can help?”

• “What is it that you would like to see happen?”

• “What would I need to do to make this right?”

Situation: After a successful exchange, you say:

• “Thank you for giving us a chance to fix this.”

• “I’m glad you called.”

• “Thank you for your loyalty.”

Desiree Ward

Desirée Ward is executive director at Alcorn, Ward, & Partners, Inc., (

www.alcorn-ward.com, www.e-learninguncovered.com) a firm devoted to training and e-learning. She can be reached at 904-343-5554 or at dward@alcorn-ward.com.

Which group of employees would be better for your company: a group of talented and motivated individuals, all diligently working on their own to further the goals of the organization or a group of employees who shared a common vision and common goals—a group that works together and who supports each other in furthering the goals of the company?

According to researchers Katzenback and Smith in The Wisdom of Teams, 1993), “Teams outperform individuals acting alone … when performance requires multiple skills, judgments, and experiences.” What this means is that whole is much greater than the sum of its parts. Many other researchers confirm these findings.

Virtually every organization, regardless of size, mission, product, and/or service can and will benefit by establishing teams. Don’t think that excludes you if you are a sole proprietor, an independent consultant, or a “mom and pop” business. These types of businesses also need teams in order to survive and thrive.

Needless to say, many of us are in a “survival mode” in this economy, and it will take a lot of flexibility and adaptability to thrive. Teaming can be a huge help.

Too often, however, business owners look for a “silver bullet” to solve all of their challenges, especially when it comes to helping people work better together to produce the best possible outcome for their organizations. In doing so you may be overlooking a concept that’s been around for a long time and for good reason. People produce better results when working as a team.

Do you need teambuilding?

How can you determine if teambuilding will benefit your business? If you have ever said or thought any of the following, teambuilding may be appropriate for your organization:

• I thought I explained everything well, but I didn’t get the results I needed.

• I don’t understand how people can sit next to each other and not offer help without being asked.

• Everyone gets his own piece of the pie to complete, but in the end, nothing fits together; we don’t have a whole pie, only separate slices on the same plate.

• Each one of us seems to have a different solution to issues and challenges. If they all achieve results does it matter? Should I set down a single way of doing things or would it be better to let majority rule?

• There seems to be a lot arguing among staff about which is the “right” way to do things.

• I seem to spend a lot of my time redoing everything other people have done.

If any of these situations sounds vaguely familiar, you may want to consider doing some team building, which can be done in a variety of ways, with most of them are relatively “painless.”

Before starting however, first determine what outcomes you want to achieve from these events or programs, such as improved communication, less bickering, more cooperation, on-time completion of projects, or fewer “do-overs.”

The teambuilding process

Here are some of the basic steps in a teambuilding process.

• Determine your starting point. This involves doing a baseline assessment of where the team is currently, prior to any intervention, so you can determine which process would be the most suitable. Then, be certain to conduct a post assessment to see if the results you wanted were achieved.
• Create an unbiased environment. Include the team leader working side-by-side with their team members.
• Assess preferred work styles. Determine work preferences and how those preferences affect teamwork in your environment.
• Do team profiles. Some very simple ones are available, for free, online. Some more sophisticated assessments, such as OPQ, Life Style Inventories, Myers-Briggs, can also be used. Understanding work and communication behaviors of individual team members will provide insights to you and them.
• Decide on the teambuilding exercise. Teambuilding exercises (also called interventions) can range from simple interactive games to group problem solving exercises to facilitator-led events. (See sidebar for examples.)

Many cost-effective teambuilding opportunities are available for any size team. With a little research, you should be able to find a facilitator or program that will fit your organization.

Patricia Petersen

Patricia E. Petersen, MS, MBA, is an organization and human resource consultant with Leadership Development Associates. She can be contacted at 904-631-8219 or

corpleader09@gmail.com.

Sidebar 1

Examples of teambuilding exercises

• Interactive games. These create an environment that may be competitive, but when team-appropriate behaviors are employed, the outcomes change. These can be board games, survival games. ball toss, puzzle solving, or project building, to name a few. The cost for games ranges from free to several hundred dollars.

Remember, though, that the objective of the game is not just to have fun—but to understand and improve teamwork. Consequently, it is important to discuss the game playing in terms of teamwork: What roles did each person take on? How did you decide on your goals? How did you communicate? What frustrations did you feel? How can these experiences be applied to work?

• Participative events. These facilitator-led exercises can range from $200 to several thousand dollars, based on complexity and facilitators needed. Examples include: low and high ropes courses; outdoor expeditions such as, scavenger hunts (orienteering) and sailing; or indoor events such as cooking schools, computer games, or mystery theatre.

Again, remember that discussion about the event (as described above) is critical to its success, otherwise the expense is just a recreational activity.

• Group problem solving. One of the most effective teambuilding events does not cost anything but yields tremendous results. It is employee involvement in solving organizational problems. The key here is to do group problem solving as part of your organizational culture, focus it on real problems as they arise, and act on the team’s solutions.

Sidebar 2

When does a group become a team?

What are the indicators that a work group has turned into a team?

The goal of most teambuilding sessions is to take a group of people who work together and transform them into what Katzenbach and Smith define as a real team: A small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.

The key phrase here is “… they hold themselves mutually accountable.” In most instances, a team is focused on a specific mission/objective/purpose, which is clearly evident in their actions and behaviors. They use a collaborative, solution-oriented process to come to a consensus about their plan of action, methodology for implementation, and continuous improvement. They have criteria that define success.

When a team is functioning well together, you will see them:

• Interacting with each other often, throughout the day;

• Clarifying and confirming action plans;

• Adapting the plan of action, as new information is shared;

• Helping each other, without being asked;

• Remaining focused on their mission; and

• Celebrating their successes.

From your perspective, the most important result will be that your business will gain focus and improve productivity with fewer headaches for you and much happier, engaged employees.

Each year, the amount of data stored on business computers grows at a rapid pace. In a typical business, this involves capturing mission- and nonmission-critical information—including financial, contact management, e-mail and various other forms of data—placing them on servers or devices designed to store this information.

In addition, many companies have transitioned to a paperless environment. This transition utilizes document imaging and scanning systems to transform documents into digital formats and saves them on the same storage devices. In most cases, a high percentage of this information is critical to the survival of the business.

The problem

What happens to all that information when you have an unexpected data loss? Unless you have a strategic backup and recovery plan, that information is gone. Data can be lost or destroyed in many ways, but the most common data disasters are:

• Hardware or system failures,

• Human error (accidental deletions),

• Software failures or viruses, and

• Natural disasters.

Recent studies have concluded half of all companies that lose their data to some type of disaster will not survive beyond six months, and of those who do survive, 90% will be out of business within two years. The question is not if, but when will data loss occur In your business? It is inevitable.

Solutions

Backup and recovery solutions have evolved over the years and various technologies have come and gone. Tape backup has been the workhorse for many years with businesses using a variety of tape technologies. For most businesses, this outdated solution has become time-consuming and cumbersome.

A growing number of businesses have moved to disk backup strategies. The method involves attaching an external hard drive to a computer or server and backing up the data up to this device. This solution works as long as the drive is available in the network, and does not experience failure or damage due to an unforeseen disaster. There is no benefit to backing up data to a device and have that device unavailable when you need it the most!

The next generation

A relatively new and blossoming technology is off-site or “cloud” data protection. Off-site protection is the process of transferring data from the source (generally one or more business servers) to a secure datacenter where the information is protected from natural and person-made disasters, including intentional and unintentional deletion of information. The data is transmitted securely using advanced encryption techniques, which protects the information from those who do not own it.

Until recently, off-site storage technology has been available only to large enterprise organizations. However, with the recent introduction of secure cloud storage technology, the availability for off-site data protection has reached the small business sector in terms of both availability and cost. A number of companies provide off-site data protection, all with varying degrees of simplicity and complexity. In addition, some companies offer an additional level of protection that actually lets you recover the entire computer system. This technology is widely known as disaster recovery (DR). The application takes a snapshot of the entire server or workstation and allows the computer to be restored to a particular point in time.

The next step

When researching on-line backup companies, look for a company that is solely focused on protecting your valuable data and can provide the necessary service and features to meet your specific needs. Do not rely solely on price. The old saying “you get what you pay for” bodes well here. Electronic business information is one of your most valuable assets. Without it, it is only a matter of time before a company is not viable. As you begin your solution search there are some key elements to remember:

• Test your backups. This is critical. It is one thing to back up your data, but you cannot stop there. You must make sure your information can be restored. Too many companies think they have accurate and current backups only to find the tapes do not work or the external storage device is damaged. Companies spend millions of dollars annually and countless person-hours trying to recreate data they thought was backed up.

Make sure you can restore quickly, easily and reliably. The speed at which you can restore your valuable data is very important. The faster the recovery, the less the financial impact to your business.

• Double-check what you are backing up. Make sure your data backup and recovery strategy covers all the information you need it to cover. This includes but is not limited to, e-mail, applications, operating systems, document files, and database records such as customer contact information and all financial transaction data.

• Back up frequently. Daily backup is best, but do it no less than weekly. Thoroughly search your computers and servers. Some data can be stored in obscured places. If you are not sure, contact your IT department or IT provider.

• Know your Internet speed. The bandwidth (speed) of your Internet access affects how fast your data is backed up. An initial backup can take several days to complete, but future backup jobs should only take minutes or a few hours.

• Backup in more than one location. Some, but not all online data protection providers have multiple data centers or servers protecting their clients’ data. You, too, should store your information in more than one place. If this is your disaster recovery strategy, make sure these facilities are protected against all types of disasters and intrusion.

• Make sure data is encrypted. Data encryption is critical to protecting data on local external devices and to a secure cloud storage facility.

Whatever backup and recovery solution you choose, make sure it is capable of protecting all of your valuable data—not just some of it! You or your data backup service provider should test your recovery strategy often. A secure and reliable data protection service or solution is the best assurance your business can have for long-term survivability!

Larry Levy

Larry Levy is the director of sales and product development for YottaXpress, a small-business data protection service. YottaXpress is offered by Yotta280, Inc.,

www.yotta280.com, a leading provider of complete data protection solutions. He can be contacted at llevy@yotta280.com or 904-674-2110.

By Dawn Josephson

Whether you’re a “solopreneur” or employer of hundreds of people, at some point every entrepreneur reaches a startling conclusion: “I don’t know everything, and I need help making decisions.”

Yes, it’s a tough pill to swallow. But the sooner a business owner reaches out and accepts key insights from others, the more successful the business will be.

This realization often marks the pivotal moment when many entrepreneurs decide to form an advisory board. While many business owners interchange the terms “advisory board” and “board of directors,” they are actually two very different things.

Just as the name implies, an advisory board simply offers advice to the business owner.

Sandy Bartow

Sandy Bartow, vice president of the Jacksonville Regional Chamber of Commerce’s Small Business Division, explains, “An advisory board is a non-fiduciary board of advisors who assist in a business’s growth and planning. This group provides a 360 degree view of differing viewpoints and combined expertise related to an issue, a challenge, or planning.”

In contrast, a board of directors is a body of elected or appointed members who jointly oversee the activities of the company. They govern the organization by establishing broad policies and objectives; select, appoint, support, and review the performance of the CEO; ensure the availability of adequate financial resources; approve annual budgets; and are held accountable to the stakeholders for the organization’s performance.

Knowing this, an advisory board is often the better choice for a for-profit small business. (Non-profits of any size typically must have a board of directors.)

A fresh perspective

Having an outside perspective for your business sounds good in theory, but is it always good in practice? Some local business owners certainly think so.

Clint Drawdy

Clint Drawdy

and Chad Perse started Hire Methods, a professional staffing company, in 2004. A few months into their new venture, they realized they needed some guidance and formed a six-person advisory board. Today, they couldn’t imagine running their business without one.

“In the beginning, our company was growing very fast— perhaps too fast,” explains Drawdy. “Our advisory board helped us navigate that period and work with banks effectively so we could get the capital we needed to keep growing the right way.”

Chad Perce

Since then, they’ve relied on their advisory board for a number of specific issues, including growth, financing, marketing, and overall strategy. “Sometimes the board members act as a devil’s advocate, and other times they offer experiential learning,” says Drawdy. “Both are important. The key for me is not leading my advisors to the answer I want. I’ve learned that it’s best to just state the problem and give some company background, but not to paint a scenario in such a way that I inadvertently force them to a certain conclusion. That’s when I get the best advice.”

Nathn Fabrick

Nathan Fabrick

, president of 110%, an athletic apparel company, was fortunate in that when he purchased the company in 2009, an eight-member advisory board was already in place. Since day one, he’s leaned on them to help with the business’s strategy.

“Getting to use other people’s experience, wisdom, and guidance helps you stay on track,” he says. “When you run a small business, it’s easy to slide into rabbit holes and start working on things that might be good for today, but not good for the business’s long-term growth. It’s helpful to have outsiders ask you questions, make sure you build systems, and hold you accountable.”

Both Drawdy and Fabrick agree that their advisory boards have positively impacted their company’s growth. They also encourage all business owners to form their own advisory board as soon as possible.

Tips from the pros

If you think an advisory board sounds like a good option but you’re unsure how to form one, here are some tips to get you started.

• Pick the right people. Cathy Hagan, area director for the UNF Small Business

Therefore, she advises that you seek out professionals from a variety of backgrounds, such as finance, marketing, and human resources. Reach out to those people, even if you don’t personally know them, and ask if they’d be on your advisory board. You’ll be surprised how many people say “yes.”

• Establish a meeting schedule. According to Bartow, the board’s meeting schedule will depend on the stage or current activity of the business. If something intense is going on, such as an acquisition, the advisory board may meet weekly. However, for routine matters, bi-monthly or quarterly will often suffice. Both Drawdy and Fabrick meet with their advisory boards on a quarterly basis.

• Enforce term limits. While you could have the same advisory board members forever, you also want the ability to dismiss one and bring in someone new. “As the business grows, the owner’s needs of expertise will change,” says Hagan. “You want your board to reflect the advice you need and the stage you’re in. So bring board members in with a one or two year term, with an option to renew. That way there’s no hard feelings should you want to get rid of someone.”

• Decide compensation. While many business owners pay for food and other meeting expenses for board members, being on an advisory board is typically an unpaid position. “Experts agree to do it because they like to give back,” says Bartow. “They want to support a business owner and help them grow their company.”

Additionally, Drawdy reveals that the meetings aren’t always about him. “Sometimes the issue we’re discussing also pertains to a board member’s business,” he says. “My board members often say they leave the meetings having learned just as much from the experience.”  

No matter how helpful or insightful an advisory board may be, the final decisions the business owner makes are solely their own. “At the end of the day, you have to go with your gut,” says Fabrick. “No one knows your business better than you. So listen to your advisors and learn from them…but take everything with a grain of salt.”

Dawn Josephson is a contributing editor to Advantage. She can be reached at dawn@masterwritingcoach.com.

Buying a company is like finding a spouse. You must know what you’re looking for, recognize when you’ve found it, and commit to making it work.

Mergers and acquisitions can be good ways to grow your business, but you must be proactive in your approach and deliberate in your execution. “Nothing is a good deal if you don’t need it,” said Don Wiggins, president of local investment banking firm Heritage Capital Group. “It’s what you need. It’s what fits.”

Growing by merger or acquisition should not be done hastily. It requires diligently following four steps:

• Define your strategy,

• Make the approach,

• Negotiate the deal, and

• Execute the plan.

Define your strategy

Start by determining your reasons for expanding. Are you trying to grow geographically? Or gain more local market share? Remove competition? Add new services?

Companies often consider mergers and acquisitions if growth plateaus, said Joe Palermo, a partner in B2B CFO. You can continue to grow organically but you will pick up market share faster by buying a competitor, he said.

Identify the criteria for the company you want to pursue, including its annual revenue, number of employees, and market share, suggested Palermo. Consider your top three competitors based upon your knowledge of your industry, their performances, your previous dealings with them, and their reputation. Buying or merging with a competitor typically brings synergies such as the ability to consolidate operations, streamline management, improve purchasing power and leverage relationships.

It also may be easier to acquire a competitor’s customers by buying the company than trying to lure them individually, particularly if they are loyal to the other business, said Cal Heseman, a business broker with Transworld Business Brokers.

You may have to review several companies to find one that will work for you, Wiggins said. Be methodical in your process, and proactive rather than reactive.

“You want to make sure you’re prepared to go to market on your terms, not someone else’s,” Wiggins added.

Make the approach

Once you have honed in on some target companies, reach out to them discreetly. You can use an intermediary like Wiggins or Heseman, who protect your identity early in the process. Or, you can approach them informally.

Palermo often invites a potential seller to lunch or dinner. Business owners who are proud of their companies often enjoy discussing common trends and issues over a meal. During the meal, Palermo may ask, “In a perfect world how do you see your company moving forward?”

The question often prompts the business owner to consider scenarios he or she may not have otherwise. “A lot of people who own companies don’t think about doing anything until they’re approached,” Palermo said. “Everyone is so busy running their company they don’t plan ahead for this.”

Palermo lets the conversation flow naturally, without pushing. He lets business owners identify opportunities such as joint ventures on their own.

Depending upon the business owner’s age, Palermo also may ask about retirement plans. Specifically, he will ask what the owner intends to do with the company, the tax ramifications of the plan, and how the owner would invest any proceeds if the business were sold.

His goal in asking these questions is to get the business owner thinking of selling so that the possibility could be explored further in additional meetings.

Negotiate the deal

Once you have an interested seller, start drafting the parameters of a deal. A merger would combine the two companies into one, while an acquisition would be a purchase of one business by the other.

“A lot of companies out there are on the ropes,” Heseman said. “If their numbers are still the same as they were a few years ago, you can pick them up a little cheaper.” Seller financing often is available as well, he said. “Just because the banks aren’t financing doesn’t mean we aren’t going to get a deal done.”

Heseman cited a recent deal in which the buyer paid 50% of the purchase price in cash. The seller financed 10%, and the remaining 40% will be earned out as a certain percentage of revenue over 24 months. “We have to be a little more creative in how we get deals done, but they’re getting done,” Heseman said.

If you buy a company, consider whether you will purchase just the assets or if you will buy the stock, which would also transfer liabilities, Palermo said. Review the company’s financials closely, particularly the number of customers and how much they generate. “If the revenue’s not there, no matter what you do you’re going to have a problem,” he said.

In addition to ensuring all of the numbers are accurate, Palermo asks business owners if they run any personal expenses through the company. If they do, there could be additional savings by eliminating those expenses through the deal. He also will ask for financial projections.

Due diligence is taking longer than in the past because buyers don’t want to make mistakes, Wiggins said. He recommends reviewing a company’s operations, financials, legal compliance, and (if applicable) technology.

Envision how you will combine the companies, and what the resulting business will look like, Palermo said.

Execute your plan

Know where your synergies and savings will come from before completing the deal, Palermo said. Possible synergies including getting better pricing on benefits, services, or materials through increased purchasing power. You also may increase sales. “You have to be careful cutting the marketing and sales people because they have those relationships,” said Palermo.

You can often save money by consolidating your back office operations, combining facilities and trimming payroll. Identify the savings in advance and reap them according to your plan.

If you plan to combine accounting operations in 45 days but take longer, then you push the savings out further, affecting other parts of your plan, Palermo said. “If you say you want to implement these types of changes you have to stay on the game plan.”

Watch your numbers carefully as you move the combined company ahead, Heseman emphasized. “The person who buys a business and learns to focus on revenue growth while closely managing expenses is going to be well positioned when the economy improves.”

Jim Molis is a contributing editor to Advantage: The Resource for Small Business. He can be contacted at jim@creatwoodpr.com.

SIDEBAR

Acquisitions from a buyer’s point of view

Venture capitalists and the companies they support often begin with the end in mind.

Investors favor companies that could eventually be sold, thereby generating returns commensurate with a high-risk investment, said Al Rossiter, president of Springboard Capital Management, an equity investment fund specializing in early-stage venture investments.

As they consider each investment opportunity, Rossiter and fellow investors evaluate a company’s potential appeal to financial or strategic buyers. Financial buyers acquire companies for cash flow or other strong fundamentals, without intending to operate the business. Strategic buyers acquire and operate companies that align with their plans for growth.

Rossiter looks for companies with a “sustaining competitive advantage” that would appeal to strategic buyers. Examples would include a proprietary technology or geographic market share that would be more difficult or expensive for an acquiring company to develop independently. “There needs to be something of distinct value there,” Rossiter said.

If a company ultimately seeks to be acquired, you can position your company for a potential sale to a strategic buyer from the start. “You have to understand what the value of your company represents to the potential acquirer,” Rossiter said. For example, if you produce medical equipment that a larger company may eventually want to manufacture at its own facilities then don’t build your own plants. The acquirer would not pay for your facilities, only the core technology.

“Understanding the strategic benefit that it brings to an acquirer allows you to develop the business plan that enhances that strategic value without adding baggage,” Rossiter said. “You’re developing the company to expand or enhance those attributes that the acquirer would desire.”

If you plan to sell to a competitor, get attention by building a strong customer base. “Generally you need some sense of scale, some operating track record to even become noticed within a market,” Rossiter said. Having a full understanding of the desired outcome is key to the business-planning process.

By Erica Courtney

We have seen the statistics. The federal government spends more than $550 billion on goods and services annually. That is $10,000 per second, every minute of every day. This is normal spending and does not even include the $787 billion recovery package passed by Congress last year to jump-start the economy. In addition, there are millions being spent on disaster recovery/natural disaster events.

Have you thought about penetrating the government marketplace? Perhaps it is time to stop thinking about it and do it. While you sit and wait, your competition is most likely figuring out what they need to do to be successful in this space.

Typically, companies fall into one of three categories:

• Those that have been writing proposals for months or even years, spending countless resources with no awards granted. They are just about to throw in the towel and can’t understand why they are not successful.
• Those that have never attempted to enter the space and have no idea where to begin.
• Those that need a bit of direction but not full positioning.

The fear of the unknown is scary but as with anything in life, you just need to know how to play the game. It is not that hard if you have the right tools in place along with the proper know-how. Take the proper steps in the beginning and you’ll be doing business with the federal government before you know it.

1. Get registered. As required by law, at a minimum, your firm must be registered in a few systems. First, you should have a D-U-N-S number, assigned by Dun & Bradstreet at no charge to federal contractors. (Go to http://fedgov.dnb.com/webform for information on obtaining the nine-digit number.) Then register in Central Contracting Registration (CCR) at https://www.bpn.gov/ccr/default.aspx.

You will be asked basic information about your company such as points of contact, size, and products and services offered. If you are a small business, you will also register with the Small Business Administration. When your CCR is complete, you will see a prompt to register your information in their system.

Next register at Online Representations and Certifications Applications (ORCA) at https://orca.bpn.gov/. Because this is a regulatory site, completing the form can be complicated. Set aside some time to complete your entry and ask for help if needed. CCS has a great resource page at www.courtneysolutions.com/resources.html for more information related to company size standards, codes, regulations, and opportunities.

2. Differentiate your company. Once your company is registered with CCR, SBA, and ORCA, you can begin scrolling through Web sites such as www.FedBizOpps.gov looking for open market solicitations. Of course, so are millions of other companies, so you need to be one of a handful that stand out.

Being classified as small or disadvantaged is not enough, because there are millions of small businesses competing for the same jobs. More contracts do go to small businesses than in the past, but the majority of money goes toward large businesses that can perform many tasks and manage the overall projects. There is room for both. Search the Federal Procurement Data System (www.fpds.gov/fpdsng_cms/) to see exactly how federal funds are spent.

So how do you differentiate your firm from others? Here are some questions you should ask yourself:

• Do you have a contracting mechanism in place to make it easy for federal, state, and local buyers to do business with you?
• Have you been pre-screened for compliance and competency?
• Have your prices been deemed fair and reasonable for the taxpayer? If yes, then you save the buyer vast amounts of time spent to do background checks and manage risk.
• Do you have a fixed-price contract? (If you do have a long-term fixed price contract in place, buyers using stimulus funds must buy from you over others as stipulated by Congress in H.R. 1 ARRA Section 1554.)

3. Get a fixed-price contract. Across the board, fixed-price contracts are used most often by all major federal organizations when acquiring goods and services. But it is not easy to get one. In fact, more than 90% of all applications get rejected immediately, spawning a whole industry of consultants to help companies work through the process

General Services Administration (GSA) is the federal government’s largest acquisition arm and owns/leases more federal buildings than any other entity. You must apply through the GSA to secure a fixed-price contract, but the process can take from six months to more than a year with a consultant’s help. Without a consultant, the process is virtually unmanageable for the average business owner who does not have the time or resources to devote to the tedious process.

However, when choosing a consultant to outsource this function, make sure you hire a firm that not only gives you the tools to be effective in this marketplace but the know-how. You may have a contract, but if you do not know what to do with it, you have just wasted a lot of money. (For more information on GSA go to www.gsa.gov. Click on “For businesses,” then “Getting on schedule.”)

Tackling the government market can be daunting but the rewards are well worth it if you are willing to put some effort into it. Get good guidance from a reputable consultant and have a clear plan for what you sell and to whom you intend to sell. Understand that nothing happens quickly in the government.

Once you have your first shot at government work, make it count and do the best you can. Once that door is open others will soon follow. Be persistent and smart about approaching this market. There is no reason you can’t succeed and grow your business exponentially.

Erica Courtney

Erica Courtney is the president of Courtney Consulting Solutions,

www.courtneysolutions.com. While serving in the U.S. Army, she was responsible for buying millions of dollars worth of goods and services to support some of the most highly deployed units in the country. To contact her, call 904-371-1938 or visit her Web site at www.courtneysolutions.com.

The need for managers and supervisors to be able to coach employees effectively is greater today than ever before—for several reasons. Consider, for example:

• Employees in today’s workplaces are being asked “to do more with less.” This means companies are demanding the successful completion of more and different tasks than required in the recent past. Employees need to be taught how to do them.

• Many job applicants lack the literacy and/or math skills necessary for the jobs for which they apply. As a result many teaching-learning moments will occur between the supervisor and employee for acceptable performance to occur.

• A number of research findings show that approximately seven out of ten employees in the 18 to 35 age group believe there are no absolute ethical standards. In their view, honesty or honest actions depend on convenience. This either requires closer supervision or coaching employees to higher ethical standards.

Fortunately there are “tried and true” coaching strategies that managers and supervisors can use to improve the performance of their employees, both quantitatively and qualitatively. If you apply the following coaching principles, you will motivate and modify your employees’ performance towards much higher levels.

1. Expect employees to be successful. There exists a body of research that suggests that employees in general will perform according to expectations. As a supervisor, if you think certain employees will be successful, then they probably will be. But, if you think employees will not succeed, then they probably won’t. The reasons for this generally exist within the relationship between the employee and supervisor.

2. Assess current performance first. You must know the specific levels at which employees are performing, before you can coach effectively. You can usually determine the level through a combination of observation, performance feedback conversations, and normal monitoring of work. A written performance improvement plan is recommended for all employees.

3. Know how to address nonperformance issues. As a supervisor, you have three basic approaches to handle employee nonperformance issues: Avoid the issue altogether, which usually doesn’t solve anything; threaten the employee with a negative sanction, which may stop or fix the performance issue in the short run but only creates other problems between the supervisor and the employee; or collaborate with the employee to fix the issue. Collaboration is the preferred method.

4. Clarify expectations. Employees need to know what success means, as well as what it means to perform at the highest level, the lowest level, and everywhere in between. Show your employees what the expectations are for each level, and then let employees choose to perform at a given level for their own reasons. (Of course, each level of performance comes with its own rewards or consequences.)

5. Check for understanding. Do not assume that employees understand verbal communications, even when they say, “I don’t have any questions.” People differ in many ways and have different life experiences, which affect understanding. Because of these differences, we make mistakes when we communicate with each another. The only way to account for differences is to make sure the receiver (the employee) of a message understands the message, so the sender (the supervisor) must check the receiver’s understanding by asking a few questions about the message.

6. Use the 2+2 strategy. This amounts to talking to employees about their individual performance for at least a couple of minutes every couple of weeks. Supervisors talk to employees about work all the time. They don’t, however, usually talk much about the employee’s individual performance except when an issue arises, or during the annual performance evaluation process. Make it a point to  talk with employees about their performance at a minimum a couple of minutes every couple of weeks.

7. Reward good behavior. Use positive consequences (rewards) for desirable behavior (performance). Identify ways to reward both employee performance and effort. At a minimum, use verbal praise when it makes sense. One way to determine how to reward employees is to actually ask them what would be rewarding to them.

8. Sanction nonperformance. Nonperformance is undesirable behavior. Use negative consequences to change undesirable behavior. A technique called “corrective feedback” can be used to deal with any type of performance issue.

9. Give specific, timely feedback to employees. Give performance feedback to employees, on a consistent basis. Also, it is acceptable to give general feedback, such as, “That was an excellent effort;” however, the feedback is more powerful when it is specific. For example, say, “That was an excellent effort. I especially liked the way you showed empathy to the customer, and then asked how you could help and didn’t pass the person to someone else.”

10. Use the “pull style” coaching as much as possible. Telling employees what to do (“push style”), is easier than pulling the solution out of them through questioning and guidance (“pull style”). But, as a result of using the “pull style,” employees are more likely to be accountable and will also grow much more because they are learning to think on their feet and solve their own problems.

This list of 10 coaching principles is not exhaustive, but if you use them consistently, you will find employee satisfaction and accompanying performance levels will rise to higher levels—which is the point of coaching.

Michael Clark

Michael Clark is a senior consultant/trainer for the Division of Continuing Education, University of North Florida, where he specializes in developing and conducting management/supervision training programs.  He is also owner of MRC Consulting, which specializes in the creation and implementation of both organizational and management/supervision development strategies. He can be contacted by e-mail (mrcconsulting@earthlink.net) or by phone, either 904-620-4200, or 850-545-1451.

SIDEBAR

Want more information on coaching?

The tips in this article came from these reference materials, where you can find more ideas on coaching your employees:

• Why Employees Don’t Do What They Are Supposed to Do, Ferdinand Fournies, McGraw-Hill, 1999.

• Coaching for Improved Work Performance, Ferdinand Fournies, McGraw-Hill, 2000.

Want more information on getting more from your employees? Go to http://advantagebizmag.com/archives/1556.

Josephson’s aim during the 90-minute session was to help participants identify the things in their mindset that were holding them back in their businesses, and to show them how to break the cycle that keeps them from reaching new heights.

The process consists essentially of three activities—all aimed at finding the most critical barriers to success. Josephson led the group through three activities:

1. Understand your reality. Knowing where you are starting from is the only way you can change, he said. He asked the group to write down three things that bugging them. These things are your reality, he said.

2. List the things that clutter your thinking or your life. In addition to things that are bothersome, Josephson said people have a lot of clutter in their lives. He suggested these might be e-mail, watching too much television, leaving tasks undone, and many more. He asked the group to list as many clutter items as they could identify.

“Clutter can be physical, such as a garage so messy you can’t get the car in it or a desk so covered you can’t see the desktop, or emotional, such as feelings of unworthiness or depression.

Then, referring to the 80/20 rule—80% of results come from 20% of activities—he asked the group to pick out those clutter items that have the most effect on their success. He then asked, “What would happen if you reduced clutter by only 5% and replaced it with something positive and money-making? This could actually improve your bottom line by 30% to 40%! And you could grow really big by removing 10% of your clutter.”

How to get rid of clutter? Make a commitment, he said. Your commitment choices (depending upon the type of clutter you are dealing with) are don’t do it; delegate it or outsource it; downshift its scope and frequency; or destroy and redesign.

3. Assess your life. Josephson said the wheel of life consists of a number of spokes— family/friends, play, mind, health, financial, spiritual, and career/business. He asked the group to rate their satisfaction on each of these spokes and connect the dots. “Does your wheel look like it is out or warp?” he asked, indicating that most people have wheel that are flat in some areas.

These flat areas are where you should focus your attention for at least a month. “You’ll find,” he said, “that if you put air in the tire, other parts will puff out, too.”

Power to change

The purpose of the exercises, said Josephson, is to help you see the reality of your life, as it is now. “But, you have the power to change,” he stressed, explaining that results are the end product of actions and behavior, which are driven by attitude. “If you want an attitude makeover, look at the results you want to achieve first,” he said.

For example: If you know that 2% of your calls will result in sales, then to get two sales each week (the result you want), you need to make 100 calls (actions to take). To drive those actions, you need to think positively about selling (attitude adjustment), perhaps by thinking of yourself as an expert instead of a sales person.

What this amounts to, he explained, is a change in story. The old story of someone who has trouble selling is “I hate selling but I have to do it for a living.” The new story is “I am an expert who can help others solve their problems.”

“We can make the decision to change our success thermostat,” said Josephson. “Our business can become what we allow it to become.” Key to this decision making is the kind of questions we ask ourselves, he explained. “We can ask empowering questions or disempowering questions. ‘Why is this happening to me?’ is disempowering and dislodges the logical side. But questions such as ‘What can we do to solve this problem?’ are empowering; they engage the local side.

He ended by challenging the group, “What can you do to take your business to the next level?”

Dave Josephson

Dave Josephson is a certified coach in the Strategic Mindset Process with The Growth Coach (www.thegrowthcoachofjax.com). He can be reached at 904-861-0434. Advantage’s Knowledge Is Power workshop was co-sponsored by VenturePlex and Costco.

WEB EXCLUSIVE: Go to go to http://advantagebizmag.com/events/podcasts to download a podcast of Dave Josephson’s workshop, “How to break through the self-sabotage barrier.”

Last year was a difficult year for businesses, regardless of size or industry. Everyone’s sales suffered. This left many companies in the Catch 22 of having to downsize—even in the sales department— just to survive the economic landslide. Organizations were forced to reduce their ability to reach out to clients just at the point when they needed even more face time and client “touches” to maintain market share.

With half the year gone, 2010 is looking more promising. The big challenge is how to recover the lost contact with clients and begin to rebuild and grow sales. A three-step process can help you accomplish this: lead, follow, and get out of the way.

Lead

Leadership can be demonstrated in a number of different ways. However, a simple way to demonstrate it is through developing talent, attitude, and trust.

• Talent. To turn aptitude into skill, conduct weekly developmental sales meetings that do more than cover general housekeeping items. For instance: Plan your meetings in a series to keep attention and energy flowing from one week to the next. Incorporate current industry trends, late-breaking news, and product knowledge. Other suggestions: take the team on a field trip to see a new business or bring in an outside speaker.

Try engaging your team with a monthly feature called “You Run the Meeting.” Assign responsibility for planning one sales meeting each month to a team member, on any topic they choose.

• Attitude. Help your team become prepared mentally for the task at hand. Reward great performances publicly during the sales meetings with a “Wall of Fame” where great sales are posted, and individually with small gifts and tokens to let each person know that you care about them and value their efforts.

If an employee’s attitude (a disposition, not a temporary mood) becomes negative, take that person aside (perhaps at lunch) and talk about what is clouding his or her vision and how you can help get the person back on a positive path.

• Trust. Don’t place blame; show you trust your staff, even when mistakes happen. Help them to solve problems while teaching them how to avoid making the same mistake again.  Value your team members’ opinions.

Follow

“Following” means listening and taking into account suggestions and ideas that can make your department function at a higher level. Here are three ways to follow:

• Channel the energy. Every team member has his or her own unique set of experiences, hopes, dreams, passions, and desires. That diversity of thought is very powerful if channeled into creative problem solving.  

• Build attitudes from within. Channeling and directing a team’s energy helps to create a culture of teamwork, trust, and respect. This positive environment breeds a positive attitude that increases productivity.

• Have fun. When tension builds within the department, take note and do something to ease the stress. Some suggestions: Have an impromptu team lunch; go to a movie as a group; hit a happy hour on a Friday afternoon.

Get out of the way

Getting out of the way—letting go—take courage and trust. It is the most empowering way you can motivate a sales team. To get out of the way:

• Let your staff make decisions. Sales—and decisions leading to signing on the dotted line—are made in the field. Give your staff the authority to make decisions as they deal with clients. How much authority? Give them parameters that allow them to deal with customers while keeping you comfortable.

• Learn from mistakes. The only way sales people really learn their craft is in making mistakes. Do not assign blame; rather, look for ways to avoid the mistake in the future. And, in the meantime, back up your staff.

• Pave the road. Give credit where it is due; never take credit for your sales team’s success. Create an environment that allows each person to flourish— “paving the road”. Smooth out the bumps, put up signs telling them when danger is approaching, and then get out of the way and let them drive as fast as possible toward their personal goals!

Brad Raney is local sales manager of CBS47 and is the creator of the “Improve Your VOWELS” program and Web site. He can be reached at brad@ImproveYourVowels.com or 904-343-0169.